Rising unemployment, swine flu and the threat of health care reform all ganged up on managed care companies in the third quarter and could hurt their performance heading into 2010. But most of the large publicly traded health insurers reported better-than-expected profit growth for the latest period, and analysts still see strong core businesses beneath the challenges facing the industry.

Managed care stocks raced out of the trading gate Wednesday, a day after the Senate's top Democrat signaled that Congress may miss a year-end deadline for passing health care legislation.

The Senate health care committee chairman said Tuesday the panel is investigating how health insurers price the coverage they sell to small businesses, which have struggled for years with soaring premiums.

Managed care company Aetna Inc. said Tuesday it has completed a $70 million acquisition of employee assistance program provider Horizon Behavioral Services LLC.

Health insurer Humana Monday projected lower profit next year as it sees profit margin pressure on its Medicare business for the elderly and weaker enrollment in its commercial plans serving employers.

By Lewis Krauskopf

Health insurer Humana Inc. rode its strong government business in posting a 65 percent jump in third-quarter profit Monday, as bulging membership and premiums from Medicare Advantage overcame a lackluster commercial segment hampered by the weak economy.

Among the earnings stories for Thursday, Oct. 29, from AP Financial News:

Among the earnings stories for Thursday, Oct. 29, from AP Financial News:

Health insurers UnitedHealth Group Inc. and WellPoint Inc. have said they expect operating income to drop next year, as employers continue to cut jobs and decrease the number of people covered by their insurance.

A powerful state senator wants insurance companies and HMOs to stop denying coverage of routine medical treatment, such as doctor's visits and X-rays, for Florida cancer patients participating in clinical trials.

Wall Street may be roaring again and manufacturers see a bright future selling their wares in Asia. But for many Americans, it's still a downturn until the jobs come back.

Wall Street may be roaring again and manufacturers see a bright future selling their wares in Asia. But for many Americans, it's still a downturn until the jobs come back.

For investors who can stomach a rough few months and hold them into next year, scooping up health insurance stocks may be a smart move.

The  Senate Finance Committee Tuesday approved its version of legislation to overhaul the nation's $2.5 trillion health care system. Following are some of the health industry winners and losers based on the Senate committee's bill.